KUALA LUMPUR Feb 17 Malaysia's Employees
Provident Fund (EPF), the world's sixth-largest pension pool,
declared a dividend rate of 6.35 percent for 2013, its highest
in over a decade.
Income from equities accounted for two-thirds of its 31.2
billion ringgit ($9.44 billion) payout, and mitigated a drop in
contribution from fixed income instruments.
"By having a diversified portfolio across many markets, we
are able to take opportunities when they arise and reduce the
overall risk to the fund," chairman Samsudin Osman said in a
The EPF, a key investor in Malaysia's market for Islamic
bonds, saw contributions from its fixed income portfolio drop 22
percent to 7.53 billion ringgit because of the absence of some
one-off transactions, it said.
Lower interest rates globally and the reinvestment of
maturing bonds at lower rates also had a negative impact, said
A higher proportion of offshore investments paid off for the
fund. Its overseas exposure rose to 20.9 percent of assets from
15.7 percent in 2012. "To secure a stable long-term yield and
manage risks, we continue to expand our reach overseas and
broaden our outsourced asset management," it said.
($1 = 3.3052 Malaysian ringgit)
(Reporting by Al-Zaquan Amer Hamzah; Editing by Andrew Torchia)